Suppose That Firm C in This Table Was Found Guilty

question 238

Multiple Choice

Suppose that Firm C in this table was found guilty of antitrust violations and split into two firms with equal market share. This would cause the Herfindahl index to

• A)rise to 2,064.
• B)fall to 2,064.
• C)fall to 1,936.
• D)rise to 1,936.

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Definitions:

Olfactory

Relating to the sense of smell, often involving the olfactory system which includes the nose and brain.

Cranial Nerve

One of twelve nerves that arise directly from the brain, not the spinal cord, and control various functions from muscle movement to sensory information.

Auditory Nervous System

The part of the nervous system responsible for processing auditory information, from the ears to the brain.

Cuddling

The act of holding someone closely in one's arms as a way of showing love or affection.